L-3 Reveals Accounting Problems, Takes Charge

L-3 Communications Holdings Inc. learned from a whistleblower that a group of former employees misstated revenue and costs linked to a U.S. Army contract, according to people familiar with the situation.

The company fired four employees linked to the contract, and the disclosure led the aerospace-and-defense company to book an initial charge of $84 million and trim full-year guidance, causing its share price to plunge.